In the first nine months of 2013 Givaudan recorded sales of CHF 3,318 million, an increase of 5.0% on a like-for-like¹ basis and 2.7% in Swiss francs compared to the previous year.
Givaudan continues to demonstrate strong business momentum with a full project pipeline and win rates sustained at a high level. Volume growth in all markets in the third quarter was consistent with levels during the first six months of the year. In the third quarter pricing effects were negligible.
Mid-term, the overall objective is to grow organically between 4.5% and 5.5% per annum, assuming a market growth of 2-3%, and to continue on the path of market share gains. By delivering on the Company’s five pillar growth strategy – developing markets, Health and Wellness, market share gains with targeted customers and segments, research and sustainable sourcing - Givaudan expects to outgrow the underlying market and to continue to achieve its industry-leading EBITDA margin while improving its annual free cash flow to between 14% and 16% of sales by 2015.
Givaudan confirms its intention to return above 60% of the Company’s free cash flow to shareholders while maintaining a medium term leverage ratio target below 25%. The leverage ratio is defined as net debt, divided by net debt plus equity. For this ratio calculation, the Company has decided to exclude from equity any impact arising from the changes of IAS 19 – Employee Benefits (revised) going forward.
For more information, please visit www.givaudan.com